World News | AP Source: Banks working on First Republic rescue plan

NEW YORK, March 16 (AP) – Some Wall Street banks are planning a rescue package of at least $20 billion for First Republic Bank, sources told The Associated Press on Thursday.

The bailout comes as San Francisco-based First Republic has been hit by investors amid growing concerns that the midsize lender could be next to fail after Silicon Valley Bank and Signature Bank.

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JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs are part of a banking group uniting the scheme, sources familiar with the matter said. It could have included $20 billion in deposits and capital from the First Republic, but it could have been as high as $30 billion.

The sources spoke on condition of anonymity because the package is still under development.

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A First Republic spokesman declined to comment on the reports.

Shares in First Republic Bank fell as customers began withdrawing deposits. But shares rose more than 3% on Thursday after reports of the rescue plan surfaced.

The news follows the collapse of Silicon Valley Bank last week, the second-largest bank failure in U.S. history after Washington Mutual collapsed in 2008.

The collapse of Silicon Valley Bank on Friday and New York-based Signature Bank two days later brought back bad memories of the financial crisis that plunged the US into the Great Recession of 2007-2009.

Determined to restore public confidence in the banking system, the federal government took action over the weekend to protect all bank deposits, even those over the FDIC-mandated limit of $250,000 per personal account.

On Thursday, the White House declined to comment on reports of a rescue plan for First Republic Bank, with assets exceeding $200 billion. (Associated Press)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)